This summer, the residential rental market in Abu Dhabi is experiencing a significant increase in prices for both affordable and luxury accommodations. According to a recent analysis by a property portal, the first half of this year has seen a notable rise in rental costs for apartments and villas compared to the latter half of 2023. In upscale neighborhoods such as Saadiyat Island and Al Raha Beach, apartment rentals have surged by double digits, while affordable flats in areas popular with expats, like Tourist Club Area and Al Muroor, have also increased in price.
Fibha Ahmed, the vice president of property sales at Bayut & dubizzle, highlighted the robust demand in the Abu Dhabi rental market, noting that most areas have seen price increases. She emphasized that the market favors landlords, particularly in the luxury sector, where apartment rents have risen by over 20% and villa rents by about 12%. According to Bayut’s report, Khalifa City and Al Khalidiyah are favored for affordable apartment rentals, while Mohammed Bin Zayed City and Khalifa City lead in searches for affordable villas.
In the affordable apartment segment, prices have increased by up to 8% in key areas compared to the second half of 2023. Average yearly rents for studios and one- and two-bedroom flats have seen varying increases across locations like Al Muroor, Khalifa City, Al Khalidiyah, and Tourist Club Area. Meanwhile, affordable villas have seen average yearly rents rise by more than 3% in top areas, particularly for three- and five-bedroom units, with some decreases noted for four-bedroom villas.
Luxury apartments have also witnessed significant demand, with one-bedroom flats in Saadiyat Island, Al Raha Beach, and Yas Island experiencing substantial rent increases. The luxury villa market has seen mixed trends, with some areas reporting decreases in rental prices for four-bedroom units and others showing increases for five-bedroom villas.
